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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 11-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended: December 31, 2010
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
 For the transition period from _______ to _______
 Commission file Number 001-14471
 MEDICIS PHARMACEUTICAL CORPORATION 401(k) PLAN
  MEDICIS PHARMACEUTICAL CORPORATION
 
 MEDICIS PHARMACEUTICAL CORPORATION 401(k) PLAN




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Financial Statements and  Supplemental Schedule




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##### 



Contents
 Report of Independent Registered Public Accounting Firm
    
    
    1Financial StatementsStatements of Net Assets Available for Benefits
    
    
    2Statement of Changes in Net Assets Available for Benefits
    
    
    3Notes to Financial Statements
    
    
    4Supplemental ScheduleSchedule H, Line 4(i)  Schedule of Assets (Held at End of Year)
    
    
    16EX-23




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1




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December 31,2010
    
    
    2009AssetsInvestments, at fair value
    
    $
    47,236,058
    
    
    $
    35,680,641Employer contributions receivable
    
    
    3,097,709
    
    
    
    2,205,897Participant contributions receivable
    
    
    111,328
    
    
    
    103,566Notes receivable from participants
    
    
    547,447
    
    
    
    516,664Interest and dividend receivable
    
    
    12,168
    
    
    
    8,282Net assets reflecting investments at fair value
    
    
    51,004,710
    
    
    
    38,515,050Adjustment from fair value to contract value for fullybenefit-responsive investment contracts
    
    
    (103,656
    )
    
    
    (18,411
    )Net assets available for benefits
    
    $
    50,901,054
    
    
    $
    38,496,639
 See accompanying notes.
 2




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AdditionsNet investment income:Interest and dividend income
    
    $
    798,272Net appreciation in fair value of investments
    
    
    4,802,372Net investment income
    
    
    5,600,644Contributions:Participant contributions
    
    
    5,344,389Rollover contributions
    
    
    757,598Employer contributions
    
    
    4,722,179Total contributions
    
    
    10,824,166DeductionsBenefits paid directly to participants
    
    
    (3,955,071
    )Administrative expenses
    
    
    (65,324
    )Total deductions
    
    
    (4,020,395
    )Net increase
    
    
    12,404,415Net assets available for benefits:Beginning of year
    
    
    38,496,639End of year
    
    $
    50,901,054
 See accompanying notes.
 3




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1. Description of the Plan
 General
  Contributions
   Participant Accounts
  4




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1. Description of the Plan (continued)
 Vesting
  Participant Loans
  Forfeitures
  Benefit Payments
  5




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1. Description of the Plan (continued)
 Plan Termination
  Administrative Expenses
  2. Significant Accounting Policies
 Basis of Accounting
  Notes Receivable from Participants
  Investments Valuation and Income Recognition
   6




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2. Significant Accounting Policies (continued)
     Use of Estimates
  New Accounting Pronouncements
 Improving Disclosures About Fair Value Measurements Fair Value Measurements and Disclosures
 7




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2. Significant Accounting Policies (continued)
  Reporting Loans to Participants by Defined
Contribution Pension Plans
 Amendments to Achieve Common Fair Value Measurements and
Disclosure Requirements in U.S. GAAP and IFRSs
 Reclassifications
  8




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##### Table of Contents



3. Investments
  December 31,2010
    
    2009Schwab Managed Retirement 2030 Cl II
    
    $
    5,192,420
    
    
    $
    4,102,764Investment Co of America R5
    
    
    4,885,182
    
    
    
    4,261,207Schwab Stable Value Instl**
    
    
    4,121,312
    
    
    
    2,686,660Schwab Managed Retirement 2040 C1 II
    
    
    3,376,818
    
    
    
    1,957,447Goldman Sachs Mid Cap Value Instl
    
    
    3,287,174
    
    
    
    2,332,772Thornburg International Value I
    
    
    3,132,485
    
    
    
    2,247,907PIMCO Total Return Fund Cl A
    
    
    3,114,119
    
    
    
    2,329,121Vanguard Mid Cap Growth Idx Inv
    
    
    3,078,437
    
    
    
    2,018,674William Blair International Growth Fund I
    
    
    2,851,267
    
    
    
    2,288,349Medicis Pharmaceutical Corporation Class A
Common Stock
    
    
    *
    
    
    
    2,261,218Schwab Managed Retirement 2020 C1 II
    
    
    *
    
    
    
    2,227,123
 
 *
    
    Investment balance represents less than 5% of net assets for indicated year.**
    
    The contract value of the Plans investment in the Schwab Stable Value Instl was $4,017,656 and
$2,668,249 at December 31, 2010 and 2009, respectively.  Mutual funds
    
    $
    3,166,227Common collective trust funds
    
    
    1,649,364Common stock
    
    
    (13,219
    )Total
    
    $
    4,802,372
 4. Fair Value Measurements
  9




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4. Fair Value Measurements (continued)
  Level 1:
 Level 2:
 
    
    Quoted prices for similar assets or liabilities in active markets;
    
    Quoted prices for identical or similar assets or liabilities in inactive markets;
    
    Inputs other than quoted prices that are observable for the asset or liability;
    
    Inputs that are derived principally from or corroborated by observable market data by
correlation or other means.
    
    If the asset or liability has a specified (contractual) term, the Level 2 input must be
observable for substantially the full term of the asset or liability.
 Level 3:
   Mutual funds:
 10




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4. Fair Value Measurements (continued)
 Medicis Pharmaceutical Corporation common stock:
 Money market funds:
 Self-directed brokerage account:
 Common collective trust funds (the CCTs):
  11




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4. Fair Value Measurements (continued)
  December 31, 2010Level 1
    
    Level 2
    
    Level 3
    
    TotalMutual funds:Large Cap Value/Growth
    
    $
    4,884,646
    
    
    $
    
    
    
    $
    
    
    
    $
    4,884,646Large Cap Blend
    
    
    4,885,182
    
    
    
    
    
    
    
    
    
    
    
    4,885,182Foreign Large Cap Growth
    
    
    5,983,751
    
    
    
    
    
    
    
    
    
    
    
    5,983,751Mid Cap Value/Growth
    
    
    6,365,611
    
    
    
    
    
    
    
    
    
    
    
    6,365,611Bond Funds
    
    
    3,614,420
    
    
    
    
    
    
    
    
    
    
    
    3,614,420Global Real Estate
    
    
    1,435,724
    
    
    
    
    
    
    
    
    
    
    
    1,435,724Medicis Pharmaceutical Corporation common
stock
    
    
    1,807,816
    
    
    
    
    
    
    
    
    
    
    
    1,807,816Self-direct brokerage account
    
    
    1,861,076
    
    
    
    
    
    
    
    
    
    
    
    1,861,076Money market funds
    
    
    
    
    
    
    285
    
    
    
    
    
    
    
    285Common collective trust funds:Balanced Funds
    
    
    
    
    
    
    12,276,235
    
    
    
    
    
    
    
    12,276,235Fixed Income
    
    
    
    
    
    
    4,121,312
    
    
    
    
    
    
    
    4,121,312Total investments at fair value
    
    $
    30,838,226
    
    
    $
    16,397,832
    
    
    $
    
    
    
    $
    47,236,058
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4. Fair Value Measurements (continued)
 December 31, 2009Level 1
    
    Level 2
    
    Level 3
    
    TotalMutual funds:Large Cap Value/Growth
    
    $
    3,555,284
    
    
    $
    
    
    
    $
    
    
    
    $
    3,555,284Large Cap Blend
    
    
    4,261,206
    
    
    
    
    
    
    
    
    
    
    
    4,261,206Foreign Large Cap Growth
    
    
    4,536,255
    
    
    
    
    
    
    
    
    
    
    
    4,536,255Mid Cap Value/Growth
    
    
    4,351,446
    
    
    
    
    
    
    
    
    
    
    
    4,351,446Bond Funds
    
    
    2,361,151
    
    
    
    
    
    
    
    
    
    
    
    2,361,151Global Real Estate
    
    
    1,073,634
    
    
    
    
    
    
    
    
    
    
    
    1,073,634Medicis Pharmaceutical Corporation common
stock
    
    
    2,261,218
    
    
    
    
    
    
    
    
    
    
    
    2,261,218Self-direct brokerage account
    
    
    1,249,853
    
    
    
    
    
    
    
    
    
    
    
    1,249,853Money market funds
    
    
    
    
    
    
    187
    
    
    
    
    
    
    
    187Common collective trust funds:Balanced Funds
    
    
    
    
    
    
    9,343,747
    
    
    
    
    
    
    
    9,343,747Fixed Income
    
    
    
    
    
    
    2,686,660
    
    
    
    
    
    
    
    2,686,660Total investments at fair value
    
    $
    23,650,047
    
    
    $
    12,030,594
    
    
    $
    
    
    
    $
    35,680,641
  5. Income Tax Status
  13




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5. Income Tax Status (continued)
  6. Parties-In-Interest
  7. Reconciliation of Financial Statements to Form 5500
  December 31,2010
    
    2009Net assets available for benefits per the
financial statements
    
    $
    50,901,054
    
    
    $
    38,496,639Investment contract valuation  adjustment
from contract value to fair value
    
    
    103,656
    
    
    
    18,411Net assets available for benefits per Form 5500
    
    $
    51,004,710
    
    
    $
    38,515,050
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7. Reconciliation of Financial Statements to Form 5500 (continued)
  2010Net increase in net assets available for benefits per the
financial statements
    
    $
    12,404,415Adjustment from contract value to fair value at December 31, 2009
    
    
    (18,411
    )Adjustment from contract value to fair value at December 31, 2010
    
    
    103,656Net increase in net assets available for benefits per Form 5500
    
    $
    12,489,660
 8. Other Matters
  15




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Description of InvestmentIncluding Maturity Date, RateIdentity of Issue, Borrower, Lessor, or
    
    of Interest, Collateral, Par,
    
    
    
    
    
    
    
    
    
    
    CurrentSimilar Party
    
    or Maturity Value
    
    
    Shares
    
    
    Cost
    
    
    ValueMutual funds:American Beacon Lgcp Val Instl
    
    Registered Investment Company
    
    
    46,078
    
    
    
    *
    *
    
    $
    898,519Brandywine Blue Fund
    
    Registered Investment Company
    
    
    84,246
    
    
    
    *
    *
    
    
    2,160,072Cohen & Steers Institutional Global Realty
    
    Registered Investment Company
    
    
    69,292
    
    
    
    *
    *
    
    
    1,435,724Goldman Sachs Mid Cap Value Instl
    
    Registered Investment Company
    
    
    90,932
    
    
    
    *
    *
    
    
    3,287,174Investment Co of America R5
    
    Registered Investment Company
    
    
    173,541
    
    
    
    *
    *
    
    
    4,885,182MFS Value Fund Class A
    
    Registered Investment Company
    
    
    80,055
    
    
    
    *
    *
    
    
    1,826,054PIMCO All Asset All Authority Inst
    
    Registered Investment Company
    
    
    47,332
    
    
    
    *
    *
    
    
    500,301PIMCO Total Return Fund Cl A
    
    Registered Investment Company
    
    
    287,016
    
    
    
    *
    *
    
    
    3,114,119Thornburg International Value I
    
    Registered Investment Company
    
    
    109,375
    
    
    
    *
    *
    
    
    3,132,485Vanguard Mid Cap Growth Idx Inv
    
    Registered Investment Company
    
    
    125,856
    
    
    
    *
    *
    
    
    3,078,437William Blair International Growth Fund I
    
    Registered Investment Company
    
    
    127,631
    
    
    
    *
    *
    
    
    2,851,267Self-direct brokerage account
    
    Various Registered Investment
    
    
    Company Mutual Funds
    
    
    
    
    
    
    *
    *
    
    
    1,337,621Common collective trust funds:*
    
    
    Schwab Managed Retirement 2010 C1 II
    
    Common Collective Trust Fund
    
    
    48,734
    
    
    
    *
    *
    
    
    806,549*
    
    
    Schwab Managed Retirement 2020 C1 II
    
    Common Collective Trust Fund
    
    
    132,114
    
    
    
    *
    *
    
    
    2,318,604*
    
    
    Schwab Managed Retirement 2030 C1 II
    
    Common Collective Trust Fund
    
    
    285,141
    
    
    
    *
    *
    
    
    5,192,420*
    
    
    Schwab Managed Retirement 2040 C1 II
    
    Common Collective Trust Fund
    
    
    183,623
    
    
    
    *
    *
    
    
    3,376,818*
    
    
    Schwab Managed Retirement 2050 C1 II
    
    Common Collective Trust Fund
    
    
    55,447
    
    
    
    *
    *
    
    
    542,273*
    
    
    Schwab Managed Retirement Income II
    
    Common Collective Trust Fund
    
    
    3,032
    
    
    
    *
    *
    
    
    39,571*
    
    
    Schwab Stable Value Instl
    
    Common Collective Trust Fund
    
    
    205,561
    
    
    
    *
    *
    
    
    4,121,312Common stock:*
    
    
    Medicis Pharmaceutical Corporation
Class A Common Stock
    
    Employer Securities
    
    
    67,481
    
    
    
    *
    *
    
    
    1,807,816Money Market Stock Liquidity
    
    Money Market
    
    
    
    
    
    
    *
    *
    
    
    285Short-term investments:*
    
    
    Schwab Municipal Money Fund
    
    Short-term investments
    
    
    
    
    
    
    *
    *
    
    
    7,313*
    
    
    Schwab Money Market Fund
    
    Short-term investments
    
    
    
    
    
    
    *
    *
    
    
    419,539*
    
    
    Cash included in Self-Brokerage Investments
    
    Short-term investments
    
    
    
    
    
    
    *
    *
    
    
    96,603$
    47,236,058
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Description of InvestmentIncluding Maturity Date, RateIdentity of Issue, Borrower, Lessor, or
    
    of Interest, Collateral, Par,
    
    
    
    
    
    
    
    
    
    
    CurrentSimilar Party
    
    or Maturity Value
    
    
    Shares
    
    
    Cost
    
    
    Value*
    
    
    Participant loans
    
    Notes receivable from participants, Interest rates ranging from 4.25% to 9.50%; various maturities
    
    
    
    
    
    
    *
    *
    
    
    547,447$
    47,783,505
 
 *
    
    Party in interest as defined by ERISA**
    
    Investments are participant-directed, therefore cost information is not required. 17




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The Plan
 MEDICIS PHARMACEUTICAL 
CORPORATION 401(k) PLAN
(Full Title of the Plan)Date: July 12, 2011
    By:
    /s/ RICHARD D. PETERSONRichard D. PetersonExecutive Vice President, Chief
Financial Officer and Treasurer of
Medicis Pharmaceutical Corporation,
issuer of the securities held pursuant to
the Plan (Plan Administrator)